Skip to main content

tv   The Call  CNBC  March 5, 2010 11:00am-12:00pm EST

11:00 am
good morning, melissa. >> we like this one. this is a debate. our parent company is banning its employees from smoking outside on company grounds. >> that means you, larry. >> in our "call of the wild." we're going to debate its merits. this "the call" on cnbc. >> here it is. >> nicorette. all right. it's all about jobs today on wall street. employers cut a smaller-than-expected 38,000 jobs in february. i don't need it, thanks. bell on tering views that the labor market was on the verge of actually creating jobs. take a look at how the s&p 500 is trading now. it's up better than a percentage point, pretty good on this friday, it's up about 11.5 points and the dow is trading to the plus side by almost 100 points up by 0.9% and take a look at the nasdaq it is trading up 24 points and at 2317. in the meantime, take a look at my old friend, crude oil hit a seven-week high today.
11:01 am
81.66, the last trade day and that's almost a buck and a half and a little less than 2% and the dollar playing a role there and the jobs role playing an even bigger role. let's go to steve liesman with the numbers behind the numbers in the february jobs report. we have a lot of questions for you, steve. >> very interesting and reports i've gotten from economists in the past hour make it more interesting. a pitched, energized debate is is under way. >> on the set. >> the weather affected this report and thereby, how strong or weak is the job market and the economy? let me go through this as simply as i can, i apologize for any confusion. some are saying the better-than-expected number is actually way better than the 36,000 decline because it was severely repressed by those two blizzards in february, add to that the unemployment rate of 9.7% and the job growth of 300,000 in the separate household survey and the bulls see big job growth in the months ahead and the average hour rising 6.7% and this was the
11:02 am
worst biggest number of the time since 1977. even though the people are counted as working, it's a sign for the bulls that the blizzard blasted the jobs number, but the job bears are pointing to statements first reported by cnbc from a bls commissioner. phil is telling me if a person was at work during a pay period and that includes the week of the 12th he's counted as working. that means many of the people on biweekly paychecks only have to work one hour in a 14-day period and they're counted as working, therefore the snow effect should be considered minimal and the bears conclude the job market is really week. >> do you get that? >> whatever the case, lawrence, it was a much salaried decline and it didn't show the 250k decline by some prominent economists. it might have showed up in the hours worked which declined 0.1 to 3.8. the census is very confusing. hiring for the census added 15,000 workers and so far it
11:03 am
added 24,000 in the past few months. it has authorization for.2 million. the price is is is it 00,000 next month or zero to 100,000. >> who is it that showed up and only worked one hour? >> if you worked on on. >> wait, you're counted as working. why do they say it's bullish, though? why are people the number could be so much better than it is? >> because the 36,000 is really understating the true strength of the job market. >> if they called you at home and said i'm not working because it's snowing in theory. you still have a job. >> i will tell you, every time that number spikes, the payroll number goes off trend and is is much weaker than trend. every time that happens -- >> with the data, every time that happens. >> thank you, steve. >> steve is all over it. >> great weather update. >> steve's weather report. thank you so much. let's head to trish on the floor of the new york stock exchange for more reaction to today's numbers. trish? >> well, you know, i think you guys are really excited by this. i hear you.
11:04 am
we know that larry is glass half full as opposed to glass half empty, and i think that's a great way to be, but call me greedy. i think eight months into a recovery we might actually have been hoping to see a little bit more by this point in time. i mean, granted, yes, good news you look at non-farm payrolls and steve had a terrific graph up there and you can start to see the trend, and the market likes it, but you start to think about the long-term issues here and i'm still not convinced about all of it. pisani's on the floor with me. are you as greedy as i am? >> i'm pretty -- i'm more encouraged here. don't shake your head. the market needs to see bullish news, not just less bearish news. clearly, we're not going anywhere on less bearish news. i thought the news today was positive. yes, the bls, see what they said? we're not sure exactly what the effects of the storm was. they said that right at the top. look at what's going on here. the macro picture is still tough and we still need more bullish
11:05 am
news and today was a good start. commodities are up. did you see what china was saying, trish? >> yeah, no, absolutely. >> they have the fiscal monetary policy. they will continue to increase reserves and commodities this year upon. they keep buying -- look at what commodities are doing here today. we have obviously short covering in the overall commodities group and the corporate picture has been great and the earnings picture has been excellent. look at sales pictures. >> retail sales were very good. >> i'm more today than a week ago. the wholesale numbers were terrible and the macro picture is very choppy -- >> just real quick. i mean, you look at all of the money that has been spent on this economy to get the jobs picture better and it's really not having -- i know people out there are going to say, look, it could be worse. but i'm saying, why isn't it better? >> it's going to be long and tough because we had such deep losses and the productivity gains are making it tougher to hire people. can you put the oil numbers back up? sharon noted, we're getting seasonal strength in oil.
11:06 am
84 was the old high in january and we're practically there now, and look at the commodities, the big energy stocks and even valero is up today and they never move those stocks, and tesoro and other commodities. you should be more encouraged on the macro picture. >> well -- all right. thank you, bob. thank you, bob. i know somebody else is very encouraged,i'm sure, by there. larry, you will see a positive spin on it it? >> that's what we're really talking about. >> i don't know. let us get on. look, the latest jobs report was better than expected weather or not. what does that tell us about the economic road to recovery? let us bring in former labor secretary robert reich and former commerce secretary carlos gutierrez, both are highly distinguished cnbc contributors. robert reich, good morning, my friend. what do you make of this? weather or not, blizzard or not, what's your take? >> i'm actually on trish's side on this and i'm more bearish than you are and melissa may be.
11:07 am
>> i don't know where that came from. we're not bullish. we're talking about the weather effect. >> all we can say is basically, that things are getting worse more slowly. consumer confidence is down, and i think that's very, very important to focus on. i think the market is going up because the big, big news today is that anybody who has any concern that ben bernanke and the fed will raise rates and tighten, well, they should not be concerned. the fed is is not going to raise rates and it is not going to tighten. this jobs problem continues. >> yeah, i can't call you mr. secretary because then that would mean either of you, carlos, let me move on to you, here. i am not super bullish on this report. i don't know where that came from. what we were talking about is the weather analysis within it because there's a big debate going on right now whether the weather made this number better than expected on on. >> i'm sorry, melissa. >> no, i know. >> i grouped you with larry and i should never do that. larry is always bullish. >> well, that's probably true. >> i also thought that trish nailed it. you know, everything we read
11:08 am
suggests that the weather didn't have that much of an impact because of the methodology and because of the way it's measured, but let's just put the weather aside. what i'm looking at is are the conditions being created to do something for the 17 million people who are somehow affected by it. whether it be part-time work, they're out of work or as we saw in this report about 470,000 people have just stopped looking because they don't think there are jobs out there. so the magnitude of the tasks, the height of the mountain that we have to climb, what i'm asking, larry, and i know that you're -- you're more optimistic than i may be is what is the catalyst? what are we going to do, and we still haven't heard what the deficit reduction plan is and we're going to have to confront that. >> that's a good point. we'll have to step up to that and that could just set us into another steep slump. >> let us put the weather aside.
11:09 am
>> i think we did that. >> robert reich, i want to read you some numbers and get you to react because inside the report there are some positives, all right? household employment which picks up the small business e the owner-operated businesses. households in february up 308,000, in the prior month, january, 541,000, 541. those are good numbers. professional and business services in some sense, the heart of the economy, up for the third straight month. 51,000, temps up five straight months. now i'm not going to make an overwhelming case, bob, but i will say this. it looks like there's improvement. how do you see it? >> look, larry, i think the stimulus package, although you are skeptical of that is working and it continues to work, but overall i just don't see where the demand is going to come from. people are still very scared and that consumer confidence number worries me a great deal. people just don't feel that this economy is in recovery, and that is not only economically potent,
11:10 am
but it also poses some political difficulties for the president in this final stages of going for health care reform. >> but we've seen a lot of good business data. when you look at the last quarter of earnings and you look at the ism within this own report, you saw a jump in manufacturing employment and if you look at the temporary category, was there an increase in the temporary workers in the manufacturing category. isn't there a chance that business will lead us out of this recession? it's not going to be housing and not the consumer and it could be business which has become so much more productive during this recession? >> melissa, it definitely could be business. in business, profits are large and the business has a lot of cash on hand, particularly large businesses. the question is whether businesses will invest all that much all that soon if they're not sure that there are going to be consumers out there to buy the fruits of those investments. >> carlos gutierrez, is there enough innovation in this economy? are there enough animal spirits in this economy to produce the 200,000 to 300,000 new jobs per
11:11 am
month that we really need to get the unemployment rate down? >> think the animal spirits, the innovation in this country are alive and well as they have always been. what we can't do is somehow put obstacles in front of them. somehow give the perception that going for financial success is not the way to go. someone mentioned is business going to get us out of this recession. >> that was me. >> hey, business always gets us out of a recession. what else is going to get us out? the question is are we going to allow business to do what it does best? >> is is business being blunted by the threat of large-scale tax hikes across the board? >> the health care tax hikes and the foreign earnings tax hikes and the capital gains and dividends tax hikes. that's important. taxes matter, do they not? >> of course. larry, here's a sobering
11:12 am
statistic, take the top 20 economies in the world, our gdp is only surpassed by the uk, spain and greece. so that shows you, you know, the task at hand and i don't think it's going to be done by cutting government spending. if you go back to world war ii there has been one year where we cut spending over the previous year. >> there's no time like the present. >> and right now we're sort of going the other way, so -- but we're going to have to do some drastic things as opposed to just letting rates go up to 70, 80, 90%. >> robert reich and carlos gutierrez, we have to go. thanks for oin joining us. trish, over to you. >> thanks, guys. when we come back, it is jobs day. we'll get market reaction to today's better-than-expected numbers and talk about how you need to be investing in this economy righnow, melissa. can you call it a comeback? vikram pandit had a good showing on the seat yesterday leaving many wondering is citi on the rebound? you're watching cnbc, first in
11:13 am
business worldwide. with fidelity, you can take your trading around the world, because now you can trade u.s. and foreign stocks online, in 12 markets, 24 hours a day, all from the same account, and settle in u.s. dollars or the local currency. plus, we'll guide you with international research and realtime quotes, so you can diversify your portfolio, wherever -- whenever. and we'll be on call around the clock, while you trade around the globe. fidelity investments. turn here.
11:14 am
11:15 am
the greek prime minister geor george papandreou is meeting with angela merkel. he is not looking for money. germany has no intention of
11:16 am
giving greece a single cent in aid impeach you have to wonder why they're meeting then. let's ask silvia valva live in berlin. >> reporter: well, it's not about money, but it's all about money and that's what makes european politics so complicated. yes, he's here to drum up political support for his austerity plan. we had angela merkel talking earlier today in munich at a conference saying what greece put on the table is a step in the right direction, yada, yada, yada, but of course, somewhere down the line now the ball is in the court of the europeans, not necessarily the germans alone, but in the ball of the europeans and if the greek austerity plan is to work somewhere down the line, the europeans have to come up with, what? not money straight on the table, but credit guarantees, soft loans, subsidies, packages, et cetera that at the end of day could amount to quite a lot of german cents for supporting the greek economy.
11:17 am
that's what nobody's saying. direct aid is definitely not on the plate today. today what we will hear out of papandreou and smiles and shoulder tapping and saying yes, you're doing the right thing and we stand behind you. some time down in the next few months we will have pay up day for europe and ultimately that's what it's about. it's about europe and the european idea. trish, back to you. >> sill i have a thank you so much. despite greece's problems, stocks, you have them higher. will this be the catalyst to start a bull run? we want to bring in stephen wood, chief market strategist, and ca canaly of canaly trust. drew, kick it off with you, what's your take? >> the greek his to pay over 6%. it wasn't like they just gave them the money and that pricing has a way to go and interest rates in general probably have a ways to go as we go around the world and everyone has to reprice. as far as stocks go, nice jobs report today and we're okay with
11:18 am
stocks for right now. >> you're okay with stocks for right now. stephen, i'm looking that the and i've been joking that i'm just a greedy person because i want more. i look at these numbers and i know it's good and it's running in the right direction and that's all fine and dandy, but at the end of day here we are eight months in and the reality is the average american out there can't get a job. you look at numbers like detroit. 16 people are looking for a job for every one position there is. miami, 11 people looking for a position for every one that there is. so at what point does this actually start to become a real recovery that the average american can feel? >> i hate to disappoint you, but i don't think the data will make it all that happy in the near future. i think this is a grinding recovery. it is very clear that the globe by and large exited a recession. it is a global growth story, it's measurable, but not brisk. i think you will get slope, grinding data for the foreseeable future with a slight upward, but measurable bias.
11:19 am
i think it will be a square-root sign recovery. we came in almost perpendicular and we're doing better than what people would have forecast a year ago, but it's not a v-shaped brisk recovery either. the dip will grind and they're not going to be terribly fulfilling. >> and on top of that you have higher taxes and on that note, let me kick it over to larry. >> want to go back to drew. drew, you got a better-than-expected number, whatever the reasons it's way above my pay grade, but it's interesting to me. stocks up, bond rates up, dollar up, gold up, oil up. what does this mean to you? >> well, what trish and you are really looking for are jobs numbers north of 150 to 200,000 which would signal net job creation. >> no, no, no, no. my friend, i'm interested in the investment aspects of this. i'm just saying this looks to me like a recovery. treasurys sold off to 370, gold up, oil up quite a bit, right? and stocks up and the dollar up.
11:20 am
now usually -- >> that's right. >> usually it's dollar up, stocks down. today's report you get the stocks up and the dollar up. is that a change? >> well, it's a change because of the problem with the euro, right? and so at kanaly we've been long the dollar and let gold go a while back and once the nonsense with the euro settles down and the dollar will appreciate a little bit more and then it will all settle down and you'll see the carry trade look like what you saw all of last year. that will settle down. >> stephen, do you play this as a recovery trade in on the board we had some of your sector picks. it looks like you're a pro-growth, pro-recovery stock investor right now. is that the case? >> i would say so. the measurable upward bias, this is not a table pounding environment to make a big bet for most investors, but i think you do want to play the recovery. as in china a couple of weeks ago the growth there will not be as much as hoped for, but more than probably forecast.
11:21 am
you'll want to step into this, but in terms of making huge bets i think people want to look at a more strategic entrance point and you're getting good valuations. i would add that it will come down and with that you're seeing spreads and junk recovery. so you're seeing the funding liquidity in the markets and i think the fed has done their job by and large, so i -- on for some time to come. >> drew, last night ed yardeni, a distinguished strategist with the track could said growing profits and political regime change in washington come november is at 1300 s&p. 1300, what do you think of yardeni's call? >> well, ask me when i get there, larry. that's a tough one to bet on right now. i mean, there's too much political uncertainty -- >> guys, i'm being told by the producer that we have to get out of this because we're waiting
11:22 am
for president obama to speak about job creation, the very issue that all of us are creating so we'll leave it there. thank you so much. we appreciate it, drew. melissa, over to you. >> thanks so much. when we come back, citi's ceo vikram pandit made quite an impression on capitol hill. is the bank on the rebound? >> mary thompson takes a look. >> plus president obama getting ready to speak about job creation, we'll have it live. you're watching cnbc, first in business worldwide.
11:23 am
11:24 am
11:25 am
welcome back, everyone. we've got apple announcing that sales of its ipad tablet will kick off in april on april 3rd, to be exact. international sales will start later in the month and right now take a look at where apple is trading, up $7.17, 217.90. it is an all-time high and it is the company on the s&p 500 bigger than procter & gamble and believe it or not, closing this on walmart. melissa? after vikram pandit, impressive showing on capitol hill yesterday. many are wondering is citi on the comeback trail? is it worth investing? the stock is up and it is up more than 1% trading at 3.46. cnbc's mary thompson joins us with more on the story?
11:26 am
pandit believes he's back telling the congressional oversight panel it's healthy and won't need added bailout money. some analysts finding it hard to believe he couldn't remember speaking with treasury in 2008, still pandit was downsizing citi is winning supporters in the analyst community like jeff hart though he says citi still has a perception problem among investors. >> a lot of institutional investors got burned last time when citigroup went from 50 down to a dollar. it's hard to believe that this is really a new and improved citigroup. i do believe it is, but it will take time to convince people of that. >> it is also going to take some time for citi to become profitable again. that depends largely on improving employment here in the u.s., with a large domestic credit card and mortgage portfolio, citi seeing credit costs driving the results this year and while it is touting its global footprint both on the global and commercial side as
11:27 am
its chief strength, that's overshadowed by investors anticipating the government's sale of 7.7 billion shares of citi, sales that could begin on march 16th. still analyst dick bove says long-term citi could be a buy given the earnings power once you exclude the non-core assets that it's selling off. >> when you strip away city holdings, the 65 to 70 cents in earnings per share in citicorp, ten times that would be a price of $7 a share and i feel pretty strongly in the next two to three years that stock will be selling at $7 a share. >> we'll have to wait and see. bove has no other conflicts to report and sanford o'neal received, from citi last year. >> mary thompson. thank you so much. coming up next, president obama is getting ready to speak about job creation. we will take it for you live. you're watching cnbc, first in business worldwide.
11:28 am
11:29 am
11:30 am
welcome back, everyone. the travel industry has certainly been hit hard by the economy's downturn, yet apparently we're seeing some signs of recovery. take a look at this, the s&p hotel index up over 150% year to year. today it's up actually 2%. here to give us his take on the travel industry's road to recovery, president and ceo of radisson hotel company, good to
11:31 am
see you robert. >>. how are you? >> i'm well. we've been talking about the jobs report and i've been somewhat critical saying it's not enough. tell me, are you guys doing any hiring right now? >> well, we just announced today the launch of our ambition 2015 growth strategy for our hotel business which is setting us to increase our hotel portfolio by at least 50%. we've increased the number of hotels from about 1,000 today to growing our key brands, radisson, country inn and suites. our company employs about 150,000 people, so if we do do this and we do increase our hotel portfolio by 50%, you can do the math. >> yeah, i certainly can. >> we believe it's a great time to invest in that business. this is a cyclical industry. we're at the bottom of the cycle and we've seen the inflexion point and so this is the time to innovate and we were able to share with our franchisees, with
11:32 am
product and service innovations as we move the brands forward. >> hubert, it's a bullish move and somewhat of a risky move because you're betting for sure on economic recovery. what makes you so sure we're going get it. >> we were studying in q4 in 2009 an uptick in travel. we've seen occupancy rates around the world to start to stabilize and increase. we've seen corporate travel. people are on the road again. this is -- the president is right to focus job creation and exports. this is an industry that at the center of that there's 7 million or 8 million people that work in the travel and tourism industry in the u.s. the president signed in the last few days the travel promotion act and let's hope this brings more international visitors to our country and if we'll grow exports we need to get on the roads and get on the planes and calling the customers in china india and europe. >> can you give us more color on the business travel that you've seen there. you said you've seen an increase. how much? who's traveling more?
11:33 am
has the convention scene come back? it's a dirty word to have a convention anywhere nice in the past couple of years. has that changed? >> yes. it's critical that all of us adopted a positive attitude with the business travel as well as leisure travel around the world because this is, again, a key source of job creation and it can help exports and during the recession companies were on business travel and they went from the front of the plane to the back of the plane and people are on the road again because the sentiments has generally changed. so we've seen around the world probably more so in asia but also in the u.s. and with europe lagging, an uptick studying at the end of 2009 and an uptick in business trips that people are taking and also in the convention and meetings industry, people know that in order to grow their businesses they need to get their sales force together. they need to get their clients together who just had a global business conference for our hotel brand, radisson in orlando
11:34 am
with 1300 of our franchisees and general managers of our hotels and we've shared with them the new room concepts and the new restaurant concepts. >> can i ask you, how much have you had to cut prices to get people back into the hotels rooms? what's your pricing power like? >> in any cycle, in the hotel industry, when you get out of the recession the first thing to stabilize occupancy. so we have travelers now back -- coming back into the hotels. we're not obviously back yet at the levels of 2007. we expect pricing to start to firm up during 2010, meaning we expect the revenue for available room which is the combination of occupancy and average daily rates to start, you know, increasing fully in the second half of 2010. not a huge increase, but then getting into 2011 we expect, you know, to continue to see the growth which is, for us, it
11:35 am
means it's the right time to be investing. we've announced up to 1.5 billion in investment in radisson in the u.s. this is bold. >> okay. >> some optimistic signs from hubert joly. thank you very much for joining us today. >> larry. i hope you noted that optimism. up next, our parent ge is the latest company to ban outdoor smoking. good idea or is it going way too far? we'll face that in "the call of the wild." >> i'm looking forward to this one and president obama getting ready to speak about job creation and we'll have that live right here on "the call." we'll be right back.
11:36 am
hi, ellen! hi, ellen! hi, ellen! hi, ellen! we're going on a field trip to china! wow. [ chuckles ] when i was a kid, we -- we would just go to the -- the farm. [ cow moos ] [ laughter ] no, seriously, where are you guys going? ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! [ female announcer ] the new classroom.
11:37 am
see it. live it. share it. on the human network. cisco. about all the discounts boswe're offering. i've got. i some catchphrases that'llideas make these savings even more memorable. gecko: all right... gecko: good driver discounts. now that's the stuff...? boss: how 'bout this? gecko: ...they're the bee's knees? boss: or this? gecko: sir, how 'bout just "fifteen minutes could save you fifteen percent or more on car insurance." boss: ha, yeah, good luck with that catching on! anncr: geico. fifteen minutes could save you fifteen percent or more on car insurance.
11:38 am
okay. welcome back, everyone. take a look at that. you've got a dow that's up 6 points, 10,531 after that better-than-expected employment picture with nonfarm payrolls showing a decrease, shall we say. an increase and a decrease, does that make sense? some optimism there. s&p 500 trading up 11 points right now, a gain of almost 1%. again, people feeling pretty good that perhaps things are improving, nonetheless, we still are dealing with an unemployment rate that is up 10% eight months
11:39 am
into this recovery. nasdaq, really quick. we'll check that for you, see if we've got it. do we have it? maybe not. we'll move on. everything is trading in the green right now. melissa, over to you. i know larry has a shot on this. >> general electric, our parent company, has announced it will soon ban smoking both indoors and outdoors on all the properties worldwide, a step toward good health or an intrusion into people's private lives? let's bring in founder of new york city clash, a smoker's rights organization and patrick reynolds with us and he's executive director of and patrick is the grandson of tobacco magnet r.j. reynolds and thanks to both of you for joining us. my first question when i saw this, audrey, i'll start with you. what do you think is the larger motivation here? is there an economic motivation in is this about saving on health care costs and they're trying to get employes to stop smoking all together? what do you think is the larger motivation? >> the larger motivation in my
11:40 am
opinion is the man sitting to my right or left, depending where you are, that this is just ge taking up the antismoker ideology on the war on smokers because if they'll take out smoking as one reason to cut costs, allegedly, there are many other reasons to cut costs health wise that i can list. i have a dozen things on my list here that is a are as bad as smoke including salt reduction and obesity. >> maybe that's next. >> and that is -- >> maybe they'll take chocolate out of my cafeteria. i'm very concerned about this, maybe soda's next. maybe they'll take salt off the tables, i don't know. >> that is one of the biggest issues. people can't say smoking is different and only worry about smoking. it is a slippery slope and these things will be next if we a lu this to happen. >> patrick, what do you think, weigh in. >> well, i'm here to talk about smoking. i think those are reasonable. bear in mind, this is not coming from government. this ban of smoking on the general electric campuses worldwide in about 2,000
11:41 am
campuses is coming from internal management of a large company, one of the largest in the world, and it's -- the ge spokesperson, sue bishops, she said, quote, we've made a commitment to get our employees to be more healthy. so call it big brother, call it what you like, but ge doesn't want you smoking on its campuses. >> do you think they're trying to save on health care costs. >> nothing wrong with that, i'm just asking. >> and i think they have the right to do that. some states and some countries may have workers' rights that protect those workers and they'll make smoking areas and they'll see a lot of regulations and different companies and the companies are aware of that, but i think that we've seen a tremendous progress -- >> smokers have come under tremendous pressure. since we have obama and the democrats in power, we have fda regulation of tobacco passed in june. within two weeks of taking office, obama raised the federal cigarette tax by 68% and we're seeing a huge pressure on
11:42 am
smokers. >> audrey, listen. i'm like president obama, okay? i'm trying like hell to stop smoking. i chew a lot of nicorette gum during the day. i'm interested in your freedom argument, your big brother argument because it does trouble me that as a generic -- throughout the usa there's too much of this going on where government is telling us what we can and cannot do. >> this is a form of bigotry and the persecution and punishing smokers saying they can't smoke on their property, why? because they want to make their workers healthier? when did our employers become our parents? and if it were not for the efforts of the anti-smoking crusaders such as patrick reynolds, we wouldn't be witnessing this. i'll have to give a caveat that i do believe i stand for private businesses being allow to make their own policies -- but i -- >> i don't think it's something
11:43 am
you can control. >> why are they picking on smokers -- >> patrick, i think in a sense, i think you're both right and i think you're both making important stories here, but patrick, i appeal to your, freedom instincts, your -- hang on. >> let me comment on that -- >> -- hang on a second, my friend. i have to go to president obama on jobs. i beg your pardon. i've got to go. >> the work you do here, as we just heard, is making homes more energy efficient. it's saving people money. it's generating jobs and it's putting america on the path to a clean energy future, and i understand last year that you doubled your workforce thanks to -- donny. will you hire another 100 workers this year? and so, this is a model of what we want to be seeing all across
11:44 am
the country. our goal for the economy is to show similar job growth in the months ahead. this morning we learned that in february our economy lost an additional 36,000 jobs. this is actually better than expected considering the severe storms all along the east coast are estimated to have had a depressing effect on the numbers and it shows that the measures that we're taking to turn our economy around are having some impact, but even though it's better than expected, it's more than we should tolerate. far too many americans remain out of work. far too many families are still struggling in these difficult, economic times and that's why i'm not going to rest and my administration's not going to rest in our efforts to help people who are working to find a job to help business owners who want to expand feel comfortable to hire again and we will not rest until our economy is working for the middle class and
11:45 am
all americans and that's why my immediate priority is not only providing relief to people who are out of work, but also to help the private sector create jobs to put america back to work. earlier this week after breaking through a political logjam that some of you probably saw if you were watching tv, congress passed and i signed into law a bill that extends unemployment insurance to help people who have been laid off get through these hard times. it also extended cobra so that folks who have lost their jobs don't lose their health insurance and it extended financing for small businesses and makes it possible for 2,000 furloughed transportation workers to go back to work. so signing this bill and getting relief out the door swiftly is absolutely essential, but it's only a temporary step. the relief i signed into law will last about a month, and that's why i'm calling congress to extend this relief through the end of the year, and because the best form of economic relief
11:46 am
is a quality job, i'm also calling on congress to pass jobs measures that cut taxes, increase lending, incentivize expansion for businesses both large and small. now both the house and the senate have passed a bill that would give businesses a payroll tax refund for every person hired this year, and for companies that are considering expanding, this credit could help them decide to bring an extra employer to this year. so for companies like opower that are doing pretty well and already expanding, the tax credit may help them decide to hire even more workers more quickly. instead of 100, maybe we'll get 110, 115. we'll see. this bill would also encourage small companies to expand bay permitting them to write off expenses for new equipment and while it's by no means enough, this legislation is an important step on the road to recovery, and i look forward to signing it into law.
11:47 am
now even as we fight to help the private sector create more jobs and even as we fight to bring about a full economic recovery, we know that there have been success stories all across america. opower is one of those success stories. this is a company that works with utilities to help folks understand their energy costs and how they can save money on their energy bills and for the press, if you weren't able to hear, this board testifies to the number of kilowatt hours that have been saved, the amount of money that's gone back into consumers' pockets and the amount of carbon that has been taken out of the atmosphere as a consequence of the great work that the people here at opower are doing. part of the reason i suspect you're growing is that you're doing your jobs well, but i also know a big part of the reason is you're seizing the opportunities of the future. the jobs of tomorrow will be jobs in the clean energy sector
11:48 am
and this company is a great emblem for that. that's why my administration is taking steps to support a thriving, clean energy industry across this country, an industry that's making solar panels and building wind turbines, producing cutting-ejabatries for fuel-efficient cars and trucks and helping consumers get more control over their energy bills and that's also why earlier this week i urged congress to enact a new initiative we're calling home start that would offer homeowners rebates for making their homes more energy efficient, rebates worth up to $1500 for individual home upgrades and $3,000 for retrofitting their entire home. so if they're getting this good information from opower and they see that, boy, that drafty window is costing me a couple of hundred bucks a year, they're now going to have an incentive to go to home depots or go to lowe's to hire a certified contractor and make the changes that will ultimately pay for
11:49 am
themselves, improve our environment and improve our economy. i want to thanks, by the way, your home state senator mark warner for his great work on homestart in the senate. think about the way that the rebates we're talking about could help spur private sector job growth. it could not only help businesses like opower to help consumers make their homes more energy efficient, it will also create business for the local contractors and the companies hired to upgrade homes. these companies then in turn have to purchase supplies, that creates businesses for retailers. these retailers would need to re-stock their shelves and that creates business for manufacturers and almost all the goods required to make homes more energy efficient are actually produced right here in the united states of america. it's very hard to ship an energy-efficient window across an ocean. >> all right. that's president obama. we're going to jump out here. up next here on "the call." we'll head over to the nyse to
11:50 am
see how traders are positioning themselves after today's latest jobs report. trish, over to you. >> that's right. i'm going to head down to the floor and talk to a few of them. we're all going to talk to them upon plus the morning's call heading into this afternoon's trading session on this jobs friday day. you are watching cnbc, first in business worldwide ask we are back in two minutes.
11:51 am
11:52 am
okay. welcome back, everyone. we've got the market powering higher at this hour thanks to
11:53 am
that better-than-expected jobs report. the big question is how do you need to be investing right now? here with some answers we have mr. steve grasso and mr. al valdez. you're both feeling pretty confident thanks to the jobs report. allen? >> you can put any spin you want on it it's a much better number than people expected. if you look at this week last year, things are much better. overall it's good. >> you're feeling good. >> i know you feel somewhat good about this, but i'm going play devil's advocate as i've been doing most of today. you look at this jobs report we are still near the 10% level eight months into a recovery and i've got to say, where are those jobs? when are they really going to come? >> it's nothing that makes you feel confident knowing how many people are out of work, but we digested these bad numbers. people are looking into them and no, it wasn't going to be a great number. i think there are a lot of minefields in this marketplace, but we're having a positive day today. >> what about the fact that earlier in the week a lot of
11:54 am
people have been getting much more nervous and saying that this consensus that we would lose 50,000 today would be bigger than that that we could see down 100,000. that certainly didn't happen. there was a lot of pessimism this week and maybe this number is better than we think it is. do you buy that argument? >> do i, in all honesty. if you look at retail sales they were much better than expected and i think if you turned that number around, whether it's 9.7 or some people say over 11% unemployed, that means still over 80% of the country the workforce is working and they're shopping and spending. >> great point. >> steve grasso, i've got to come back to you, buddy. when you look at the slow improvement in jobs and a steady improvement in the economy including profits, the fed is investor friendly, corporate bond spreads are very narrow, i want to ask you, are we heading, building toward a big 10% rally in stocks that will blow past the old highs. isn't that what's happening here? >> you know what my worry is, my
11:55 am
worry is we thought health care reform was dead and buried and we thought we would start from scratch, my worry is it will open up to a lot of other issues. >> i've got to tell you, i'm probably the most political guy on this network -- >> short run -- >> short run, i don't think it matters. long run, i think it's going to matter a lot. short run -- >> hang on here. let me go -- >> you've done health care and higher taxes coming. short -- in the next couple of months? >> we've got higher taxes on. >> who is higher -- >> exact le. and corporations. >> how can you have corporations higher if you give them a silly little $5,000 tax credit. >> i agree. it's a waste of money. i totally agree with you. above 1125 in the s&p opens the door to 1200 on the s&p right now. so, yes, we can have a knee-jerk rally and a technically-based rally. are the fundamentals terrible? they still are. >> long-term, allen, i think the policies coming out of
11:56 am
washington are not good for stocks, growth or investors. there may be a political revolution in november, but short-term, allen, i'm impressed with the action of the market and the fundamentals of the market including profit which is people don't want to talk about. >> also today's household number was very good. it was the very good and the last two months it was very good which doesn't get much talk, but the household number, small business was very good. i remember march, technically always a good month for dow. >> we'll leave it there. thanks for joining us. that will do it for "the call." i'm melissa francis. >> i am trish regan. >> i'm larry kudlow. i'll see you on "the kudlow report" at 7:00 p.m. eastern time and right now "power lunch" is up next.
11:57 am
11:58 am
11:59 am
welcome, everybody, to a friday edition of "power lunch the." i'm tyler matheson. the dow passing the 10,500 in part because of a better-than-expected jobs report, 20 stocks in the dow are in the green right now. i'm sue herera. a tale of two


disc Borrow a DVD of this show
info Stream Only

Uploaded by TV Archive on